An Operating Segment Is a Component of a Company

question 61

Multiple Choice

An operating segment is a component of a company

• A) that engages in business activities to earn revenues and incur expenses.
• B) whose operating results are regularly reviewed by the company's chief operating officer for budgeting and evaluation purposes.
• C) for which financial information is available.
• D) All of these types of companies would have an operating segment as a component.

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Definitions:

Accounting

The systematic process of recording, analyzing, and interpreting financial information.